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Absa reaches agreement to acquire Société Generale’s custody, trustee and derivatives clearing services in South Africa.
Société Generale has reached an agreement to sell its custody, trustee and derivatives clearing services operated in Johannesburg to Absa Group Limited.
Absa agreed to acquire the related activities conducted by Société Generale in South Africa, notably its client portfolio, IT systems and all the employees dedicated to these activities.
The transaction is subject to the approvals of the relevant authorities, which are anticipated to be obtained by end of 2019.
The securities lending and borrowing services are not part of the transaction and will be terminated by end of March 2019. Furthermore, Société Generale and Absa intend to cooperate on the provision of securities services as part of the enrichment of the pan-African and global offering.
“For Absa, the acquisition supports our growth strategy in Africa,” said Maria Ramos. “The transaction allows Absa to re-establish a firm foothold in the custody and trustee services market and provides us with the opportunity to expand our offer to corporate clients in South Africa.
“Our strategic intent is, in time, to provide these services across markets where we have a presence.”
The sale is in line with Société Generale’s strategic plan whose primary objectives are to focus on markets where it can generate potential synergies with other Group businesses.
Société Generale group remains engaged in South Africa with its activities in corporate and investment banking managed via its representative office in Johannesburg and through the combined pan-African offering launched in partnership with Absa.
This article was originally published here